Saved a Boatload on Home Insurance!


home insurance, insurance, premium, auto insurance, save, savingsThese days home insurance is anything but cheap. Actually, let me correct that by saying the word insurance in general directly correlates to expensive. Car insurance is expensive. Home insurance is expensive. Life insurance is expensive. Maybe insurance advisory boards, policy makers and insurance companies as a whole should simply replace the word insurance for a more suitable word; expensive.

I do apologize for my little rant. Seriously though, insurance is expensive. I used to pay $1300 annually for my home insurance on a 950 sq foot condo. That worked out to $112.50 for home insurance every month. For my budget it’s a lot of dough to part with every month.

Rather than keep bitching, I decided to do something about it. I could have cancelled my home insurance policy as a whole. It would save me over $100 per month. My other option was to reduce my home insurance policy premium. I like the added protection behind home insurance, especially because I live above someone else, so opted to the better of the two.

I embarked on a mission to reduce my home insurance policy, and I was quite successful in doing so. Here’s a quick synopsis of how I reduced my home insurance premium.


I decided to make a few phone calls, and do some heavy duty searching online to compare different home insurance premiums. You’d be pretty surprised at how easy it is to compare different premiums. Making a few phone calls, and comparing quotes online, you can easily identify an insurer who’s offering a better deal.

Most of us know the old trick to reduce your car insurance premiums is to simply choose a higher deductible. The same principle applies to home insurance policies. Your home insurance premium will go down if you choose a higher deductible. The standard deductible on a home insurance policy  is $500.

Now think about this for a second. How likely will you make a home insurance claim for $500? The correct answer is highly unlikely. Since you’re unlikely to make a claim for a small amount, raise that sucker (deductible) on your policy.

I raised my deductible to $1,500 on my new policy, and if that emergency ever arose, and I needed the $1,500 for my deductible, it will be funded directly from my emergency fund. That’s why emergency fund’s are created.

Bundle it together

Another way to save on your home insurance policy and car insurance is by bundling it all together. Ask your existing insurer to bundle your auto and home insurance, and don’t forget to ask for the discount. Most of the time you can get a nice discount, and in other instances it simply doesn’t pay to bundle.

In my case it was not worth for me to bundle with my current auto provider. The home insurance premium was expensive to start with, hence why I decided to look elsewhere.

Extra discounts

If you have a home security system, reducing the likelihood of theft or vandalism, you can get even more of a discount on your premium. A typical home security system (monitoring) will run you roughly $450 per year. Check if its worth it, before you go ahead, and install a new home security system.

If you live in a condo, like my self, you’ll be asked if you have a 24/7 concierge and security camera’s installed in the condo building. I have one of the two, so I got another small discount.

If you are a non-smokers, that could save you money.  Also having  a mortgage-free home or a home that’s less than 10 years old can save you a few more bucks.

To put the icing on the cake I paid the whole premium upfront. This gave me roughly another 7% discount on my total annual premium. After all was said and done,  I managed to save $520 on my home insurance premium. My new premium will cost me $830 annually or $69.10 per month if I paid monthly.

Check around, make some calls, and don’t be afraid to haggle. You’ve got nothing to lose, and a lot to gain.



  1. Your right on the costs and alsoon the savings. I already employed the 1 K + deductible and the joint car/home one years ago. Last year I was hit with an additional fee because I have an oilfurnace. No choice in the country unless I install a wood furnace which would probably hike it higher. Apparently its the oil tanks. Although mine was installed only 10 years ago and is not proscribed by the industry (inspected every year), it didn’t matter as there had been claims elsewhere by other insurance companies (not that type of oil tank). I am getting a new one installed at considerable expense almost 3 K with a 30 year warranty and its own insurance coverage up to $5 million! The insurance company still maintains that I have to pay their $200 surcharge even though the oil tank insurer would pay (my home is only insured all up for 750 K including contents). My insurance broker says they all do it and it is still the cheapest I can get. I have never made an insurance claim on the home that I have owned for 30 years. Seems to me like a rip off.

    • That’s one of the things that people in the country get hit with is the “oil” insurance. I really don’t see a big difference between the gas that’s fed to the homes in the city, versus the oil that is pumped into your oil tank once or twice a year.

      BTW, how do you find heating on oil? Cheaper or more expensive compared to natural gas?

  2. rene@personal loans says:

    Thats a pretty awesome saving.
    I totally didn’t know that you get a reduction for being a non-smoker, thats awesome. I’ll definitely be reviewing our Home Insurance tonight. Thanks for the tips.

    • Hi Rene,

      Trust me, I didn’t know much of this either, until you really get into it. Some you read here and there, but a lot is discovered when you visit your agent/broker.

  3. I had a claim over wind damaged shingles. The repair cost came in under the deductible. So no money from insurance. BUT because I contacted them it was a recorded claim which cost me a $50 increase in Premium for 3 years.
    If you have a question make sure you have the broker talk to you off the record first.

  4. Non Owners Auto Insurance Quote Orlando says:

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    this article presents good understanding yet.